This invention provides an improved process for producing azetidinones useful as hypocholesterolemic agents, as disclosed in co-owned, copending PCT Publication WO 95/08532, which is equivalent to U.S. Pat. No. 5,767,115, filed Mar. 18, 1996, the disclosure of which is hereby incorporated by reference. More particularly, this invention provides the steps of producing an azetidinone represented by the formula 1.